Florida Life Insurance Test

Florida Life Insurance Test
1. S buys $100,000 whole life policy in 2003 and pays an annual premium of $100. S dies
five years later in 2008 and the insured pays the beneficiary
$10,500.What kind of writer did S include on the policy?
Answer: A Return of premium rider
2. All of these statements about the Waiver of Premium provision are correctEXCEPT
Answer: Insured must be eligible for Social Security disability for claim to be excepted
3. Which of these provisions require proof of insurability after a policy haslapsed?
Answer: Reinstatement
4. S would like to use dividends from her life insurance policy to purchasepaid-up additions.
All of these would be factors that determine how muchcoverage can be purchased EXCEPT
Answer: Beneficiary's age
5. What action can a policyholdertake if an application for a bank loan requirescollateral?
Answer: Assign policy ownership to the bank
6. How do life insurance companies handle cases where the insured commitsuicide with in the
contract's stated Contestable period?
Answer: Claims are denied under the Suicide clause of the policy
7. P is blinded in an industrial accident. Which provision of his life insurancepolicy will pay a
stated benefit amount?
Answer: Accidental Death and Dismembermentprovision
8. B owns aWhole Life policy with a guaranteed insurability option that allowshim to purchase,
without evidence of insurability,stated amounts of
Answer: AdditionalWhole Life coverage at specified times
9. How are surrender charges deducted in a life policy with a rear-end loadedprovision?
Answer: Deducted when the policy is discontinued
10. What does the ownership clause in a life insurance policy state?
Answer: Who thepolicy owner is and what rights the policy owner is entitled to
11. A life insurance policy which ensures that the premiums will be paid if the insured
becomes disabled has what kind of rider attached?
Answer: Waiver of premium
12. A provision in a life insurance policy that paysthe policyholder an amountthat does not
surpass the guaranteed cash value is called the
Answer: Policy Loan provision